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RBA Day Is Here

AUSSIE BONDS

A light steepening impetus has been observed in early Sydney trade, leaving YM at unch. levels, while XM trades -1.5. The former stuck to a narrow range overnight, while the later oscillated, dealing either side of unchanged, before settling back around Sydney closing levels.

  • Today's focus is squarely on the RBA decision, with the Bank's recent inaction when it comes to enforcing its YCT mechanism triggering wide speculation that it will drop its yield targeting scheme come the end of today's meeting. Such a move would also allow the Bank to adjust its forward guidance re: rate hikes (a reminder that market pricing re: a cash rate hike is much more aggressive than the Bank's own view on this matter). Please see our full preview for more colour on the decision.
  • A quick reminder that liquidity will be thinned by the Melbourne Cup event in the wake of the RBA decision (today is a state holiday for Victoria).
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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